How to build a solid budget in 2019

Starting from the first day of 2019, people started to reshuffle their budget to manage 2018 holiday overspending. The process is tough but it’ll put your finances back on track normally within 4 to 5 months. But don’t you think that your entire year budget should be organized too? Yes, of course.

It is the high time to rearrange your finances in order by following some fresh ideas and build your budget for the entire 2019.

Organize your calendar, prepare a spreadsheet, and start working on your budget. Here are a few hardcore tips you should consider.

Start with a clean slate approach

It’s the best method you must apply while creating your entire budget from scratch. Do not add expenses or subtract costs from your existing budget plan for 2018. The clean slate approach is a comfortable way to build a budget, giving importance to each and every expense required for you.

Don’t forget to add expense that has a profit-driven purpose, known as zero-based budgeting.

Check credit score and credit report

Your credit score has an impact on the interest rates while you apply for credit cards, mortgages, and other important loans. Having a bad credit score may ruin your budget. It may also prevent you from getting further credit and gradually increase your interest rates.

In case of identity theft, you might be getting huge unpaid bills as some crook might have created new credit card accounts in your name. As a result, a huge credit card debt may ruin your credit score totally along with your finances. So, it is important to improve your credit score and check your credit report regularly for any errors or signs of fraud.

Anticipate incoming expenses

If you have anticipated any big expenses coming nearby like – tuition fees, license renewals, home renovation, car payment, grocery bills, cable bill, etc, asap add that expense into your budget plan. Do not wait until you get the exact bills over your head. You may not have enough time to manage these expenses by manipulating your current budget.

Don’t forget to include positive items as well. Add your income rise or unexpected fund which may help you to manage a monthly budget easily for a couple of months.

Save first and spend later

Many people follow a budget plan for handling the expenses only. They put savings on a secondary priority. They estimate expenses and save whatever is left after paying off the bills. But, the best approach is to do the opposite. You may save first and spend later.

You may save a minimum of 15% of your paycheck every month and start doing monthly expenses from the remaining 85%. This way, you’ll force yourself to maintain a budget within limited money along with saving a fixed amount every month.

Review last years’ data

You should have clear data on your last years’ unfinished financial goals. Combine those unfinished goals with your current financial goals for this year. Consider adjusting your budgeting method. You need to have a proper idea on whether or not you need to reduce your costs, increase your savings, pay off your debts, or adjust other resources.

This way your old data on the previous year may help you to track and allocate this years’ budget.

Stick to your budget throughout the year, and modify your strategies if an emergency happens. You don’t need to be a financial planner to successfully manage your budget plan. Follow above given tips, do your hard work with proper discipline, your finances will shine in 2019. Best of luck.